Query related to cash flow statement
This query is : Resolved
02 November 2011
Can fixed deposits be shown as investing activity in Cash Flow Statement?
Gursimar Singh
(Expert)
02 November 2011
No Fixed deposits should come under "cash and cash equilence" as its as liquid as cash.
16 November 2011
AS 3 Cash Flow Statement defines cash as "Cash comprises cash on hand and demand deposits with banks".
Accordingly fixed deposits are cash for the purpose of AS 3.
They are not even cash equivalents because they are specifically covered in the definition of 'cash'.
Accordingly fixed deposits cannot be shown as investing activities.
Accordingly fixed deposits are cash for the purpose of AS 3.
They are not even cash equivalents because they are specifically covered in the definition of 'cash'.
Accordingly fixed deposits cannot be shown as investing activities.
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